Taskforce submits report on reforms of cooperatives

The 'Cooperative Sector Reforms Recommendation Taskforce, 2080' has submitted its report, suggesting short-term, mid-term and long-term measures to address the challenges surfaced in the country's cooperative sector. The government had formed the taskforce on May 9.

The taskforce has recommended that if the loan amount has exceeded more than 10 per cent of the total to an individual or household, it should be managed within six months.

Likewise, board of directors, audit committee and management from the same household and close relatives should be disassociated within three months, stating that services would be affected by the conflict of interest of such individuals.

The taskforce has also recommended that the transformation of investment of the cooperatives into different companies, mart and apartments should be managed into the liquid property within a year.

Furthermore, the cooperative organizations which failed to pay back the depositors should pay them even by transforming the other sectors' investment and fixed assets of the founders.

The cooperatives should formulate their detailed plans of action on risk management and inform their regulatory body and central association.

The study taskforce has suggested that the passports of the responsible office-bearers and those involved in the management body should be kept on hold if the depositors' collection was embezzled.

The taskforce has also recommended clearance of the financial transaction, lending, saving and loan imbursement within the parallel organizations within a year.

Frequent monitoring of the cooperative as well as feedback and reward and punishment are recommended by the taskforce.

The taskforce has concluded that shifting the investment by the cooperatives that are run by the family members towards real estate, apartment, stores and different other companies has caused problems in the cooperative organization at present.

Consultations and regular meetings among the board of directors and management team of the cooperative as well as regular information dissemination is also suggested to ensure transparency of the organizations.

National Planning Commission Member Dr Jaykant Raut led the taskforce with Secretary at the Ministry of Land Management, Cooperative and Poverty Alleviation Gokarna Mani Duwadi, Sick Cooperatives Management Committee's Chairman Kashi Raj Dahal and others as its members.